A collection of resources and commentary providing an introduction to supply chain management and related systems for students, practitioners, and anyone else interested in learning more about how to design, manufacture, transport, store, deliver, and manage products.

Tuesday, January 29, 2013

Reflection on Cradle-to-Cradle: A Closed Cycle

The essence of cradle-to-cradle is the notion of “a closed
cycle”. Parts for a product come from the natural environment, and when the
product reaches its end of life, its parts can be put back to the nature. Just
as William McDonough mentioned in his TED talk, there is no finish line for
cradle-to-cradle products, and all materials are infinitely usable. In this
video he talks about the philosophy behind cradle-to-cradle design.

However, the benefits of cradle-to-cradle can only be
maximized when equal attention has been paid to the end of the life cycle –
recycle and reproduce – as to the start of the cycle. Unfortunately, for most
companies this is not the case.

Manufacturing cradle-to-cradle or green products gives
companies such as Herman Miller a great reputation for having a sense of
environmental responsibility. But at the end of the day, it is customers to pay
for the extra cost of producing green products. The Mirra Chair, which is
mentioned in the case we read, is priced at $599. This gives companies a strong
incentive to produce green product – they get a reputation, and extra costs are
shouldered on the customers.

Then the question is, does merely producing green products
makes the cycle complete? Obviously the answer is no. While we are cheering for
those to create cradle-to-cradle
products, we should see how much efforts are still needed to ensure proper
recycling and reproducing. The cradle-to-cradle cycle has to be spinning to make
real good.

USPS is actually putting great emphasis on achieving this
closed cycle. They not only provide cradle-to-cradle packaging products (the
eco-friendly boxes and envelopes), but also buy and use a substantial amount of
recycled materials. About 220,000 tons of wastepaper, cardboard and other
materials were recycled in 2008 through its recycling and waste prevention
programs, and more than $200 million worth of products containing recycled
materials are purchased by USPS every year.

Of course, it is easier for USPS to recycle and to get
recycled materials. The question is, what strategies or policies can be used to
ensure a closed cycle for products like the Mirra Chair?